PEO Solutions

PEO vs traditional payroll outsourcing

Both take payroll off your hands. Only one takes on the employment. Here is how to choose.

Payroll outsourcing hands over the processing. A PEO hands over the employment itself. The right choice depends on how much you want to keep.

Payroll outsourcingPEO (Kingsley Crest)
Legal employerYouKingsley Crest
Contracts of employmentYoursOurs
Payroll, RTI and pensionsHandled for youHandled for you
Holiday, sickness, starters and leaversYou manage themWe manage them
Disputes and tribunalsYou manage themWe manage them
KC Rewards+ for workersNot includedIncluded as standard

Choose payroll outsourcing if

  • You want to remain the employer and keep control of HR.
  • You have HR capacity but not payroll expertise.

Choose a PEO if

  • You want a workforce without the employment administration.
  • You are growing faster than your back office.
  • You want workers to have benefits such as KC Rewards+.

See payroll bureau, PAYE payroll and PEO solutions.

Frequently asked questions

Can we start with payroll outsourcing and move to a PEO later?

Yes. Many businesses start with payroll and move workers into a PEO arrangement as they grow.

Which is cheaper?

Payroll outsourcing usually costs less because it covers less. A PEO includes employment and HR, so compare the total cost of doing that work yourself.

Need help with this? Our payroll and compliance team can talk it through with you. Talk to our team.

Last reviewed 9 October 2026. General information, not legal or tax advice.